"The 21-story Wedbush Center recently appraised at $60.5 million, a 69 percent decrease in seven years, leaving it worth less than $128 million debt connected to it."
"Occupancy at the 475,000-square-foot office building at 1000 Wilshire Boulevard slumped to 67 percent, and its debt landed in special servicing after missing a maturity date."
"The Santa Monica Clock Tower appraised at $27.4 million compared to $49 million at loan issuance, a 44 percent drop in around a decade, after missing maturity dates."
"Occupancy at the century-old, 12-story Art Deco office property at 225 Santa Monica Boulevard plummeted to 43 percent in March, far from 100 percent at loan underwriting."
The Los Angeles office sector has seen drastic value declines and increasing vacancy rates. The Wedbush Center's value dropped from $197.5 million to $60.5 million in seven years. At 1000 Wilshire Boulevard, occupancy fell to 67 percent while its backing debt entered special servicing. The Santa Monica Clock Tower's value decreased from $49 million to $27.4 million over a decade. Its occupancy also plummeted to 43 percent. The overall trend indicates financial strain and possible further declines in the office market.
Read at therealdeal.com
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